Sources of Value
A Practical Guide to the Art and Science of Valuation

An experienced senior practitioner shares the secrets of both the science and the art of financial decision making.

Simon Woolley (Author)

9780521737319, Cambridge University Press

Paperback, published 14 May 2009

642 pages
24.7 x 17.4 x 3 cm, 1.3 kg

'I firmly believe that a sound grasp of the theoretical underpinnings improves decision making greatly. Simon Woolley's book offers real help here. It brings financial theory to life in a practical way and offers some deep and new insights into the topic of shareholder value creation.' Chris Gibson-Smith, Chairman, London Stock Exchange

Sources of Value is a comprehensive guide to financial decision making suitable for beginners as well as experienced practitioners. It treats financial decision making as both an art and a science and proposes a comprehensive approach through which companies can maximise their value. Beginners will benefit from its initial financial foundation section which builds strong basic skills. Practitioners will enjoy the new insights which the eponymous Sources of Value technique offers – where values come from and why some companies can expect to create it while others cannot. The book also introduces several other techniques which, together, spell out how to combine strategy with valuation and an understanding of accounts to make a fundamental improvement in the quality of corporate financial decision taking. Sources of Value is written in a readable conversational style and will appeal to those already working in companies as well as those studying on a business course.

List of figures
Preface
Acknowledgements
Part I. The Financial Building Blocks: 1. Economic value
2. Financial markets
3. Understanding accounts
4. Planning and control
5. Risk
Part II. The Three Pillars of Financial Analysis: Overview
6. Modelling economic value
7. Sources of value
8. What sets the share price? Where from, where to?
Part III. Three Views of Deeper and Broader Skills: 9. Cost of capital
10. Valuing flexibility
11. When value is not the objective
Overall conclusions
Appendices: I. Suggested answers to individual assignments
II. Bibliography
III. Glossary
IV. Index
V. Annotated bibliography.

Subject Areas: Finance [KFF], Finance & accounting [KF], Economics, finance, business & management [K]